Section 2: Financial Reform Under Tyler

What financial reforms did Whigs want to introduce after winning the election of 1840?

They wanted to end the independent treasury system and establish a new national bank to strengthen the federal government's role in the economy.

What was the Fiscal Bank Bill?

A Whig proposal to create a new Bank of the United States. President John Tyler vetoed it because he opposed centralized banking on constitutional and practical grounds.

What happened after Tyler vetoed the Fiscal Bank Bill?

Whig leaders introduced another proposal called the Fiscal Corporation, but Tyler vetoed that bill as well, further angering the Whigs.

Why did Henry Clay and other Whigs strongly oppose Tyler's bank vetoes?

They believed a national bank was essential to stabilizing the economy and carrying out the Whig economic program. Tyler's vetoes prevented a major part of their agenda.

Why did Tyler veto the first Whig tariff bill?

He supported raising revenue but objected to the bill because it distributed money from Western public-land sales among the states.

What was the revised Tariff of 1842?

A tariff signed by John Tyler that raised import duties to generate revenue for the federal government and protect American industries.

Why did Tyler eventually sign the revised Tariff of 1842?

Although he had opposed the earlier Whig tariff, he recognized that the government needed additional revenue. The revised bill addressed the country's financial needs.

How did the revised Tariff of 1842 affect the economy?

It helped increase federal revenue and provided some protection for American manufacturers as the country gradually recovered from the economic depression.

How did Tyler's financial policies affect the Whig Party?

His vetoes of the bank bills and disagreements over tariffs destroyed his relationship with the Whigs and exposed major divisions within the party.